Crude oil prices continue to break record highs, creating global economics chaos and forcing Indonesia to downgrade growth figures. But spiralling prices have come as a bonanza for the upstream oil industry, reaping big rewards in once-marginal fields.
The rise in crude oil prices has been a blessing for the upstream oil industry in Indonesia as well as for the supporting services industry. One of the major benefactors is Cahaya Anugrah Tama (CATa), a services company established in 1997 by Purbo Waskito, 48, who serves as the company’s president director.

According to Purbo, oil producers have added more work programs in their exploration activities, especially in what used to be considered marginal oil fields. “I benefit from this as oil companies increase spending,” he says. “As an example, BP Indonesia has 250 oil wells but operates only 50. Due to the high price of crude oil, the marginal oil fields are also being developed and automatically their spending increases. I am happy with that.”
A graduate of Bandung Institute of Technology, Purbo says his company usually obtained contracts worth millions of dollars which were normally completed within three years. Now, with additional works programs, three-year contracts are being completed in one year as the company receives more and more new contracts. Purbo, a golf enthusiast, predicts a bonanza for services companies as oil well maintenance increases. “Ahead we see an extraordinary opportunity. The higher the price of crude oil, the more money is spent on maintenance. I predict that the growth of the services industry will increase between 20% to 50% for the old oil wells while, for the new ones, the budget increases by 5%,” Purbo says. PT CATa has been awarded a four-year maintenance contract for the BP platform off the coast of Jawa worth $15 million. The company also has contracts from Chevron Indonesia and China National Offshore Oil Company, CNOOC SES Ltd. This year CATa had new contract from Total E&P Indonesia in Balikpapan, East Kalimantan. Earlier, PT CATa completed contracts with PT Pertamina, Siemens Indonesia, Rekayasa Industri, and United Tractors.

The company has been consistent in focusing on services, fabrication and procurement for upstream oil industries, with fabrication workshops in Cilincing, North Jakarta, Cilegon, and Banten. At the moment, industry observers suggest the total value of the service industry has climbed to $12 billion a year. Based on 2006 data from oil and gas upstream regulary body BP Migas, oil reserves have increased by 6% to 8.68 million barrels. Of that figure, proven reserves stand at 4.31 billion barrels. The reserves stand at 4.31 billion barrels. These reserves are expected to last for 23 years.

In line with hikes in oil figures, gas reserves increased by 30% between 1999-2006. In 1999 gas reserves stood at 134.5 trillion cubic feet (tcf) while by 2006, gas reserves increased to 169.4 tcf made up of 93.9 tcf proven reserves and 75.5 tcf potential reserves. These gas reserves are expected to last 62 years.
These figures fail to take into account the huge, newly-discovered gas fields at Cepu in Central Java, the Tengah and Tangguh fields in Papua or INPEX’s Masela block in Timor Sea. Based on data from Energy Information Administration (EIA), Indonesia has 60 hydrocarbon basins.

The current volume of gas production comes from 16 of these, while 22 basins have yet to be explored, 15 basins have been explored but have not yet yielded gas and seven basins are awaiting production. For Purbo, there’s no end of work on the horizon. “My contract with BP is nearing its end and I’m triying to get one at BP’s Tangguh project,” he says.
Purbo established CATa early 1997. Originally, the company was named PT Duta waskita Baja, servicing petrochemical industries in Cilegon, Banten. After the economic crisis in 1997, Purbo changed course, changing the company’s name to Cahaya Anugrah Tama with a focus on the upstream oil and gas industries.
During nearly 11 years of service, Purbo’s company has competed on a level playing field with foreign majors such as Halliburton and Schlumberger. Purbo says employees are hit greatests assets. All are highly qualified and the company makes sure to provide ongoing training and the highest standards of health, safety, and working conditions.
“We have a special approach to the employees. They are certified employees and meet with the standards of the oil and gas industry. There are not many workers who have these skills and certifications,” Purbo says. “So, we treat them extremely well.”

Purbo’s workforce has grown from 500 to 1,000, utilizing a specialized industry database. “Now we maintain a number of people for routine jobs but when we need people for a large project, we can get them,” says Purbo, who started his own career working as an instrument enginner at PT Gunanusa Utama Fabrication.
Purbo explains that most of his projects are located in offshore fields which have higher risks than offshore projects and, unless management plans properly, completion of projects-might be delayed. “It’s all about multi-disciplined workers. They are expensive. But the contract value of the offshore projects is higher, about 2.5 times larger than onshore projects,” he says.

He admits his company is growing in terms of performance and capital. “God brings us to this point and we must be prepared at all times. But having the ambition to grow large never came to my mind. My philosophy is to live life just as it is.”
According to Purbo, the secret to business is proper management of cash flow. Making the right calculations is important. “If payments are late, it is a danger for the company. I have a bad experience dealing with local company on payments. This is why I prefer to work with he foreign companies. They have better comitment when it comes to payment,” he says.

Financially, Purbo has been well supported by the banking industry. “Especially with foreign companies, the contracts can be used as loan gurantees. I have no difficulty in financing,” he says again.
As an entrepreneur, Purbo puts God before business. “If we are God-fearing and pray, difficulties are easy to overcome. Life is like a wave, up and down. But what is more important is how we perceive it. Man tries, God decides,” he says. Purbo is close to his employees and strict open-door policy. “I have town hall meetings with my employees. If an employee has financial problems, the company will always help,” adds Purbo.

(Tulisan ini dimuat di Majalah Bisnis “Globe Asia” edisi Juli 2008, halaman 124-126. Foto: repro defrizal/Globe Asia)